Publication of names of Prospective Offenders
As per the newly inserted Section 37E of the Central Excise Act, 1944 the Government can publish the names and other details of assessees against whom the Department has launched proceedings or prosecution. Now the Government has issued guidelines on how to go about publishing the names. The decision to publish or not publish the names will be taken by the Member, CBEC and the actual publication will be done by the Chief Commissioner or DGCEI and the names may be published. The Board has cautioned the Chief Commissioners that the cases should have material evidence to show that fraud, collusion, wilful mis-statement or suppression of facts, has been committed with an intent to evade payment of duty/tax.
Is this not the requirement for every case? Does the Board admit that sometimes cases are booked without evidence? Board has also cautioned that these are stringent provisions and may effect the reputation of a person and so should be sparingly used. However Board wants that in deserving cases this power should be used though there should not be any arbitrary selection.
Speaking in the Lok Sabha on 20.8.2004, the Honourable Finance Minister said,
I think, one must be careful before branding somebody finally as a tax evader. There is a hierarchy of Tribunals and Courts and only when the last forum is exhausted, we come to a final conclusion; one can say that there is a final evasion of tax.
This was in response to request for publication of names of tax evaders.
Today we are carrying an interesting article on the issue by one of our most popular writers. See Lethal Libel in the Guest Column.
Circular No. , Dated April 19, 2007